UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 18, 2021
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||||
(Zip Code) | |||||||||||
| (Address of principal executive offices) | |||||||||||
Registrant’s Telephone Number, Including Area Code: (703 ) 442-8844
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of each class | Trading symbol | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On February 18, 2021 , Appian Corporation (the "Company") issued a press release announcing its financial results for the year ended December 31, 2020, as well as information regarding a conference call to discuss these financial results and the Company's recent business highlights and financial outlook. The Company's press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information included in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number | Description | |||||||
| 99.1 | ||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Appian Corporation | |||||||||||
Date: | By: | /s/ Mark Lynch | |||||||||
| Mark Lynch | |||||||||||
| Chief Financial Officer | |||||||||||
Exhibit 99.1
Appian Announces Fourth Quarter and Full Year 2020 Financial Results
Fourth quarter cloud subscription revenue increased 40% year-over-year to $36.9 million
Full year cloud subscription revenue increased 36% year-over-year to $129.2 million
McLean, VA – February 18, 2021 – Appian (Nasdaq: APPN) today announced financial results for the fourth quarter and full year ended December 31, 2020.
“For the full year, we exceeded our guidance and grew cloud subscription revenue by 36% to $129.2 million. Low-code emerged in 2020 as a successful way for organizations to remain nimble in the face of change. Appian is leading this market because our low-code platform is more than 10x faster, our partner ecosystem is growing, and our customers are happy," said Matt Calkins, CEO & Founder.
Fourth Quarter 2020 Financial Highlights:
•Revenue: Cloud subscription revenue was $36.9 million for the fourth quarter of 2020, up 40% compared to the fourth quarter of 2019. Total subscriptions revenue, which includes sales of SaaS subscriptions, on-premises term license subscriptions and maintenance and support, increased 33% year-over-year to $56.1 million for the fourth quarter of 2020. Professional services revenue was $25.5 million for the fourth quarter of 2020, compared to $26.5 million for the fourth quarter of 2019. Total revenue was $81.6 million for the fourth quarter of 2020, up 19% compared to the fourth quarter of 2019. Cloud subscription revenue retention rate was 119% as of December 31, 2020.
•Operating loss and non-GAAP operating loss: GAAP operating loss was $(9.7) million for the fourth quarter of 2020, compared to $(13.1) million for the fourth quarter of 2019. Non-GAAP operating loss was $(5.1) million for the fourth quarter of 2020, compared to $(9.7) million for the fourth quarter of 2019.
•Net loss and non-GAAP net loss: GAAP net loss was $(6.4) million for the fourth quarter of 2020, compared to $(10.8) million for the fourth quarter of 2019. GAAP net loss per share was $(0.09) for the fourth quarter of 2020, based on 70.4 million weighted average shares outstanding, compared to $(0.16) for the fourth quarter of 2019, based on 67.3 million weighted average shares outstanding. Non-GAAP net loss was $(1.8) million for the fourth quarter of 2020, compared to $(7.4) million for the fourth quarter of 2019. Non-GAAP net loss per share was $(0.03) for the fourth quarter of 2020, based on 70.4 million weighted average shares outstanding, compared to $(0.11) per share for the fourth quarter of 2019, based on 67.3 million weighted average shares outstanding.
•Adjusted EBITDA: Adjusted EBITDA loss was $(3.7) million for the fourth quarter of 2020, compared to $(8.2) million for the fourth quarter of 2019.
Full Year 2020 Financial Highlights:
•Revenue: Cloud subscription revenue was $129.2 million for the full year 2020, up 36% compared to the full year 2019. Total subscriptions revenue was $198.7 million for the full year 2020, an increase of 31% from the prior year. Professional services revenue was $105.9 million for the full year 2020, a decrease of 3% from the prior year. Total revenue was $304.6 million for the full year 2020, up 17% compared to the full year 2019.
•Operating loss and non-GAAP operating loss: GAAP operating loss was $(37.9) million for the full year 2020, compared to $(50.5) million for the full year 2019. Non-GAAP operating loss was $(22.6) million for the full year 2020, compared to $(34.0) million for the full year 2019.
•Net loss and non-GAAP net loss: GAAP net loss was $(33.5) million for the full year 2020, compared to $(50.7) million for the full year 2019. GAAP net loss per share was $(0.48) for the full year 2020, based on 69.1 million weighted average shares outstanding, compared to $(0.77) for the full year 2019, based on 65.5 million weighted average shares outstanding. Non-GAAP net loss was $(18.2) million for the full year 2020, compared to $(34.1) million for the full year 2019. Non-GAAP net loss per share was $(0.26) for the full year 2020, based on 69.1 million weighted average shares outstanding, compared to $(0.52) per share for the full year 2019, based on 65.5 million weighted average shares outstanding.
•Adjusted EBITDA: Adjusted EBITDA loss was $(16.8) million for the full year 2020, compared to $(29.3) million for the full year 2019.
•Balance sheet and cash flows: As of December 31, 2020, Appian had cash and cash equivalents and investments of $258.4 million. For the fourth quarter of 2020, net cash provided by operating activities was $5.8 million, compared to $(6.0) million of net cash used in operating activities for the same period in 2019. Net cash used in operating activities was $(7.6) million for the year ended December 31, 2020, compared to net cash used in operating activities of $(8.9) million for the year ended December 31, 2019. In accordance with U.S. GAAP, $17.0 million of tenant improvement allowance reimbursements received during the year ended December 31, 2019 are a source of cash in operating activities.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables following the financial statements in this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Fourth Quarter 2020 Business Highlights:
•Appian RPA achieved the Federal Risk and Authorization Management Program (FedRAMP) certification, the only robotics process automation product to have its cloud components natively certified.
•Appian was named a Leader in Gartner’s 2020 Magic Quadrant for Enterprise Low-Code Application Platforms report for the second consecutive year.
•Appian was named a Leader in Nucleus Research’s 2020 Value Matrix for Low-Code Application Platforms report.
•Appian launched the Connected Claims solution for insurers to streamline the insurance claims process.
•Appian launched the Award Management solution for government organizations to automate an early stage of the award management process.
•Appian was named a 2020 Top Workplace by The Washington Post for the seventh consecutive year and the #1 technology employer.
Financial Outlook:
As of February 18, 2021, guidance for the first quarter 2021 and full year 2021 is as follows:
•First Quarter 2021 Guidance:
◦Cloud subscription revenue is expected to be in the range of $37.7 million and $38.2 million, representing year-over-year growth of between 33% and 35%.
◦Total revenue is expected to be in the range of $81.7 million and $82.7 million, representing a year-over-year increase of between 4% and 5%.
◦Adjusted EBITDA loss is expected to be in the range of $(9.0) million and $(8.0) million.
◦Non-GAAP net loss per share is expected to be in the range of $(0.15) and $(0.13). This assumes 70.8 million weighted average common shares outstanding.
•Full Year 2021 Guidance:
◦Cloud subscription revenue is expected to be in the range of $167.5 million and $169.5 million, representing year-over-year growth of between 30% and 31%.
◦Total revenue is expected to be in the range of $353.0 million and $355.0 million, representing a year-over-year increase of between 16% and 17%.
◦Adjusted EBITDA loss is expected to be in the range of $(38.0) million and $(36.0) million.
◦Non-GAAP net loss per share is expected to be in the range of $(0.64) and $(0.60). This assumes 71.2 million weighted average common shares outstanding.
Conference Call Details:
Appian will host a conference call today, February 18, 2021, at 5:00 p.m. ET to discuss Appian's financial results for the fourth quarter and full year ended December 31, 2020 and business outlook.
The live webcast of the conference call can be accessed on the Investor Relations page of Appian’s website at
http://investors.appian.com. To access the call, please dial (877) 407-0792 in the U.S. or (201) 689-8263 internationally. Following the call, an archived webcast will be available at the same location on the Investor Relations page. A telephone replay will be available for one week at (844) 512-2921 in the U.S. or (412) 317-6671 internationally with recording access code 13715479.
About Appian
Appian (NASDAQ: APPN) helps organizations build apps and workflows rapidly, with a low-code automation platform. Combining people, technologies, and data in a single workflow, Appian can help companies maximize their resources and improve business results. Many of the world’s largest organizations use Appian applications to improve customer experience, achieve operational excellence, and simplify global risk management and compliance. For more information, visit www.appian.com.
Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, Appian provides investors with certain non-GAAP financial measures, including non-GAAP operating loss, non-GAAP net loss, non-GAAP net loss per share, non-GAAP weighted average shares outstanding and adjusted EBITDA. These non-GAAP financial measures exclude the effect of stock-based compensation expense and losses on disposal of an asset. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and Appian’s non-GAAP measures may be different from non-GAAP measures used by other companies. For more information on these non-GAAP financial measures, please see the reconciliation of these non-GAAP financial measures to their nearest comparable GAAP measures at the end of this press release. A reconciliation of non-GAAP guidance measures to the most comparable GAAP measures is not available on a forward-looking basis without unreasonable efforts due to the high variability, complexity and low visibility with respect to the charges excluded from these non-GAAP measures.
Appian uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Appian’s management believes that these non-GAAP financial measures provide meaningful supplemental information regarding Appian’s performance by excluding certain expenses that may not be indicative of its recurring core business operating results. Appian believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing Appian’s performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to historical performance as well as comparisons to competitors’ operating results. Appian believes these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to measures used by management in its financial and operational decision-making and (2) they are used by Appian’s institutional investors and the analyst community to help them analyze the health of Appian’s business.
Forward-Looking Statements
This press release includes forward-looking statements. All statements contained in this press release other than statements of historical facts, including statements regarding Appian’s future financial and business performance for the first quarter and full year 2021, the impact of COVID-19 on Appian’s business and on the global economy, future investment by Appian in its go-to-market initiatives, increased demand for the Appian platform, market opportunity and plans and objectives for future operations, including Appian’s ability to drive continued subscription revenue and total revenue growth, are forward-looking statements. The words "anticipate," believe," "continue," "estimate," "expect," "intend," "may," "will" and similar expressions are intended to identify forward-looking statements. Appian has based these forward-looking statements on its current expectations and projections about future events and financial trends that Appian believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including the risks and uncertainties associated with Appian’s ability to grow its business and manage its growth, Appian’s ability to sustain its revenue growth rate, continued market acceptance of Appian’s platform and adoption of low-code solutions to drive digital transformation, the fluctuation of Appian’s operating results due to the length and variability of its sales cycle, competition in the markets in which Appian operates, risks and uncertainties associated with the composition and concentration of Appian’s customer base and their demand for its platform and satisfaction with the services provided by Appian, the potential fluctuation of Appian’s future quarterly results of operations, Appian’s ability to shift its revenue towards subscriptions and away from professional services, Appian’s ability to operate in compliance with applicable laws and regulations, Appian’s strategic relationships with third parties and use of third-party licensed software and its platform’s compatibility with third-party applications, and the timing of Appian’s recognition of subscription revenue, which may delay the effect of near term changes in sales on its operating results, and the additional risks and uncertainties set forth in the "Risk Factors" section of Appian’s Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission on February 18, 2021 and other reports that Appian has filed with the Securities and Exchange Commission. Moreover, Appian operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for Appian’s management to predict all risks, nor can Appian assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements Appian may make. In light of these risks, uncertainties and assumptions, Appian cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. Appian is under no duty to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations, except as required by law.
Investor Contact
Scott Walker
Director, Investor Relations
703-496-4573
scott.walker@appian.com
Media Contact
Nicole Greggs
Director, Media Relations
703-260-7868
nicole.greggs@appian.com
APPIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
| As of | |||||||||||
| December 31, 2020 | December 31, 2019 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 112,462 | $ | 159,755 | |||||||
| Short-term investments and marketable securities | 109,826 | — | |||||||||
| Accounts receivable, net of allowance of $1,400 and $600 as of December 31, 2020 and December 31, 2019, respectively | 97,278 | 70,408 | |||||||||
| Deferred commissions, current | 17,899 | 14,543 | |||||||||
| Prepaid expenses and other current assets | 27,955 | 32,955 | |||||||||
| Total current assets | 365,420 | 277,661 | |||||||||
| Property and equipment, net | 35,404 | 39,554 | |||||||||
| Long-term investments | 36,120 | — | |||||||||
| Goodwill | 4,862 | — | |||||||||
| Intangible assets, net of accumulated amortization of $429 as of December 31, 2020 | 1,744 | — | |||||||||
| Operating right-of-use assets | 30,659 | 24,205 | |||||||||
| Deferred commissions, net of current portion | 34,198 | 28,979 | |||||||||
| Deferred tax assets | 489 | 494 | |||||||||
| Other assets | 3,625 | 592 | |||||||||
| Total assets | $ | 512,521 | $ | 371,485 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 2,967 | $ | 5,222 | |||||||
| Accrued expenses | 5,821 | 7,488 | |||||||||
| Accrued compensation and related benefits | 22,981 | 10,691 | |||||||||
| Deferred revenue, current | 116,256 | 82,201 | |||||||||
| Operating lease liabilities, current | 6,923 | 3,836 | |||||||||
| Finance lease liabilities, current | — | 1,447 | |||||||||
| Other current liabilities | 940 | 1,395 | |||||||||
| Total current liabilities | 155,888 | 112,280 | |||||||||
| Operating lease liabilities, net of current portion | 51,194 | 44,416 | |||||||||
| Finance lease liabilities, net of current portion | — | 2,375 | |||||||||
| Deferred revenue, net of current portion | 3,886 | 7,139 | |||||||||
| Deferred tax liabilities | 70 | 38 | |||||||||
| Other non-current liabilities | 4,878 | — | |||||||||
| Total liabilities | 215,916 | 166,248 | |||||||||
| Stockholders’ equity | |||||||||||
| Class A common stock—par value $0.0001; 500,000,000 shares authorized and 38,971,324 shares issued and outstanding as of December 31, 2020; 500,000,000 shares authorized and 34,525,386 shares issued and outstanding as of December 31, 2019 | 4 | 3 | |||||||||
| Class B common stock—par value $0.0001; 100,000,000 shares authorized and 31,707,866 shares issued and outstanding as of December 31, 2020; 100,000,000 shares authorized and 32,942,636 shares issued and outstanding as of December 31, 2019 | 3 | 3 | |||||||||
| Additional paid-in capital | 470,498 | 340,929 | |||||||||
| Accumulated other comprehensive loss | (5,010) | (285) | |||||||||
| Accumulated deficit | (168,890) | (135,413) | |||||||||
| Total stockholders’ equity | 296,605 | 205,237 | |||||||||
| Total liabilities and stockholders’ equity | $ | 512,521 | $ | 371,485 | |||||||
APPIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Subscriptions | $ | 56,096 | $ | 42,108 | $ | 198,710 | $ | 151,299 | |||||||||||||||
| Professional services | 25,534 | 26,510 | 105,863 | 109,053 | |||||||||||||||||||
| Total revenue | 81,630 | 68,618 | 304,573 | 260,352 | |||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||||
| Subscriptions | 5,641 | 4,993 | 20,826 | 17,098 | |||||||||||||||||||
| Professional services | 16,299 | 17,780 | 67,940 | 76,743 | |||||||||||||||||||
| Total cost of revenue | 21,940 | 22,773 | 88,766 | 93,841 | |||||||||||||||||||
| Gross profit | 59,690 | 45,845 | 215,807 | 166,511 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Sales and marketing | 35,425 | 31,254 | 130,316 | 117,440 | |||||||||||||||||||
| Research and development | 18,875 | 15,625 | 70,241 | 58,043 | |||||||||||||||||||
| General and administrative | 15,076 | 12,028 | 53,152 | 41,496 | |||||||||||||||||||
| Total operating expenses | 69,376 | 58,907 | 253,709 | 216,979 | |||||||||||||||||||
| Operating loss | (9,686) | (13,062) | (37,902) | (50,468) | |||||||||||||||||||
| Other income | |||||||||||||||||||||||
| Other income, net | (3,941) | (2,822) | (5,786) | (941) | |||||||||||||||||||
| Interest expense | 88 | 131 | 478 | 367 | |||||||||||||||||||
| Total other income | (3,853) | (2,691) | (5,308) | (574) | |||||||||||||||||||
| Loss before income taxes | (5,833) | (10,371) | (32,594) | (49,894) | |||||||||||||||||||
| Income tax expense | 548 | 426 | 883 | 820 | |||||||||||||||||||
| Net loss | $ | (6,381) | $ | (10,797) | $ | (33,477) | $ | (50,714) | |||||||||||||||
| Net loss per share: | |||||||||||||||||||||||
| Basic and diluted | $ | (0.09) | $ | (0.16) | $ | (0.48) | $ | (0.77) | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic and diluted | 70,362,387 | 67,316,098 | 69,050,565 | 65,479,327 | |||||||||||||||||||
APPIAN CORPORATION AND SUBSIDIARIES
STOCK BASED COMPENSATION EXPENSE
(in thousands)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| (unaudited) | |||||||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||||
| Subscriptions | $ | 265 | $ | 185 | $ | 943 | $ | 647 | |||||||||||||||
| Professional services | 542 | 287 | 1,477 | 2,748 | |||||||||||||||||||
| Operating expenses | |||||||||||||||||||||||
| Sales and marketing | 984 | 771 | 2,821 | 4,742 | |||||||||||||||||||
| Research and development | 877 | 497 | 2,718 | 3,480 | |||||||||||||||||||
| General and administrative | 1,943 | 1,648 | 7,320 | 4,826 | |||||||||||||||||||
| Total stock-based compensation expense | $ | 4,611 | $ | 3,388 | $ | 15,279 | $ | 16,443 | |||||||||||||||
APPIAN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Year Ended December 31, | |||||||||||
| 2020 | 2019 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net loss | $ | (33,477) | $ | (50,714) | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Depreciation and amortization | 5,851 | 4,742 | |||||||||
| Bad debt expense | 984 | 99 | |||||||||
| Loss on disposal of property and equipment | 22 | 146 | |||||||||
| Change in fair value of available-for-sale securities | 22 | — | |||||||||
| Deferred income taxes | (184) | (334) | |||||||||
| Stock-based compensation | 15,279 | 16,443 | |||||||||
| Changes in assets and liabilities: | |||||||||||
| Accounts receivable | (33,559) | 7,432 | |||||||||
| Prepaid expenses and other assets | 3,740 | 8,972 | |||||||||
| Deferred commissions | (8,575) | (9,319) | |||||||||
| Accounts payable and accrued expenses | (4,238) | (4,039) | |||||||||
| Accrued compensation and related benefits | 11,801 | (3,072) | |||||||||
| Other liabilities | 3,681 | 1,318 | |||||||||
| Deferred revenue | 27,626 | 12,573 | |||||||||
| Operating lease liabilities | 3,407 | 6,827 | |||||||||
| Net cash used in operating activities | (7,620) | (8,926) | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of investments | (145,968) | — | |||||||||
| Payments for acquisitions, net of cash acquired | (6,138) | — | |||||||||
| Purchases of property and equipment | (1,251) | (32,421) | |||||||||
| Net cash used in investing activities | (153,357) | (32,421) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Principal payments on finance leases | (3,822) | (653) | |||||||||
| Proceeds from public offerings, net of underwriting discounts | 108,260 | 101,653 | |||||||||
| Payments of costs related to public offerings | (346) | (350) | |||||||||
| Proceeds from exercise of common stock options | 6,376 | 4,899 | |||||||||
| Net cash provided by financing activities | 110,468 | 105,549 | |||||||||
| Effect of foreign exchange rate changes on cash and cash equivalents | 3,216 | 623 | |||||||||
| Net (decrease) increase in cash and cash equivalents | (47,293) | 64,825 | |||||||||
| Cash and cash equivalents, beginning of period | 159,755 | 94,930 | |||||||||
| Cash and cash equivalents, end of period | $ | 112,462 | $ | 159,755 | |||||||
| Supplemental disclosure of cash flow information: | |||||||||||
| Cash paid for interest | $ | 165 | $ | 331 | |||||||
| Cash paid for income taxes | $ | 1,182 | $ | 356 | |||||||
| Supplemental disclosure of non-cash financing information: | |||||||||||
| Finance lease obligations to acquire new office furniture and fixtures and computer hardware | $ | — | $ | 4,475 | |||||||
APPIAN CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES
(unaudited, in thousands, except share and per share data)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| Reconciliation of non-GAAP operating loss: | |||||||||||||||||||||||
| GAAP operating loss | $ | (9,686) | $ | (13,062) | $ | (37,902) | $ | (50,468) | |||||||||||||||
| Add back: | |||||||||||||||||||||||
| Stock-based compensation expense | 4,611 | 3,388 | 15,279 | 16,443 | |||||||||||||||||||
| Non-GAAP operating loss | $ | (5,075) | $ | (9,674) | $ | (22,623) | $ | (34,025) | |||||||||||||||
| Reconciliation of non-GAAP net loss: | |||||||||||||||||||||||
| GAAP net loss | $ | (6,381) | $ | (10,797) | $ | (33,477) | $ | (50,714) | |||||||||||||||
| Add back: | |||||||||||||||||||||||
| Stock-based compensation expense | 4,611 | 3,388 | 15,279 | 16,443 | |||||||||||||||||||
| Loss on disposal of property and equipment | — | — | 22 | 146 | |||||||||||||||||||
| Non-GAAP net loss | $ | (1,770) | $ | (7,409) | $ | (18,176) | $ | (34,125) | |||||||||||||||
| Non-GAAP earnings per share: | |||||||||||||||||||||||
| Non-GAAP net loss | $ | (1,770) | $ | (7,409) | $ | (18,176) | $ | (34,125) | |||||||||||||||
| Non-GAAP weighted average shares used to compute net loss per share, basic and diluted | 70,362,387 | 67,316,098 | 69,050,565 | 65,479,327 | |||||||||||||||||||
| Non-GAAP net loss per share, basic and diluted | $ | (0.03) | $ | (0.11) | $ | (0.26) | $ | (0.52) | |||||||||||||||
| Reconciliation of non-GAAP net loss per share, basic and diluted: | |||||||||||||||||||||||
| GAAP net loss per share, basic and diluted | $ | (0.09) | $ | (0.16) | $ | (0.48) | $ | (0.77) | |||||||||||||||
| Add back: | |||||||||||||||||||||||
| Non-GAAP adjustments to net loss per share | 0.06 | 0.05 | 0.22 | 0.25 | |||||||||||||||||||
| Non-GAAP net loss per share, basic and diluted | $ | (0.03) | $ | (0.11) | $ | (0.26) | $ | (0.52) | |||||||||||||||
| Reconciliation of adjusted EBITDA: | |||||||||||||||||||||||
| GAAP net loss | $ | (6,381) | $ | (10,797) | $ | (33,477) | $ | (50,714) | |||||||||||||||
| Other income, net | (3,941) | (2,822) | (5,786) | (941) | |||||||||||||||||||
| Interest expense | 88 | 131 | 478 | 367 | |||||||||||||||||||
| Income tax expense | 548 | 426 | 883 | 820 | |||||||||||||||||||
| Depreciation and amortization expense | 1,366 | 1,469 | 5,851 | 4,742 | |||||||||||||||||||
| Stock-based compensation expense | 4,611 | 3,388 | 15,279 | 16,443 | |||||||||||||||||||
| Adjusted EBITDA | $ | (3,709) | $ | (8,205) | $ | (16,772) | $ | (29,283) | |||||||||||||||